Listed technology investor Naspers said on Wednesday it has sufficient liquidity to navigate the changing environment and seek out new opportunities during the Covid-19 pandemic, which has wreaked havoc on global markets.
Countries globally are in lockdown in a bid to curb the spread of the coronavirus.
Naspers had more than $4bn (R73.1bn) in net cash by end-March and a $2.5bn undrawn revolving credit facility in place.
“The group has no debt maturities due until 2025,” it said.
While it is too early to estimate Covid-19’s impact on Naspers’s operations and financial information, the group said the size of the impact on operations will vary across sector and geography. However, it said that it “intends to continue to invest in its businesses to position them for future recovery”.
Naspers owns internet-based businesses that provide food delivery, e-commerce, fintech, and games among other things. Its investment in Chinese internet giant Tencent “continues to grow off a very large base and in a market, China, which appears to be emerging relatively well from the impact of Covid-19”.
In the classifieds business, Naspers said it has experienced a decline in traffic on the platform and in the short term expects a negative impact on revenue and profitability in that unit.
In payments and fintech, the European businesses “appear to be resilient”, though it’s too early to estimate the impact of the recent lockdown in India, which represents more than 50% of this business.
In food delivery, while the group is experiencing an increased demand across its portfolio, it has not always been able to meet that demand due to supply issues as restaurants close.
The food delivery businesses include Swiggy in India, iFood in Brazil and Mr D Food in SA.
In its SA online retail business, Takealot has ceased trading locally in compliance with the lockdown, but reopened for the sale and delivery of essential goods.
Bob van Dijk, group CEO of Naspers, said: “We will continue to focus on identifying ways in which our technological expertise, global networks and resources can be used to support the global fight against Covid-19.”
Last week, Naspers donated R1.5bn in emergency aid to the government’s response to the Covid-19 crisis.
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